Viking Energy Signs Agreement to Acquire Renewable Diesel Facility

Rhea-AI Summary

On November 18, 2021, Viking Energy Group (OTCQB: VKING) announced a Membership Interest Purchase Agreement to acquire a group of companies developing a renewable diesel processing plant in Reno, Nevada. The plant aims to produce approximately 43 million gallons of renewable diesel per year, with 95% construction completion and a 30% complete pre-treatment unit. The acquisition is contingent on financing and other conditions, presenting no guaranteed closure.

Positive

• Acquisition of a facility that will produce approximately 43 million gallons/year of renewable diesel.
• The plant's construction is 95% complete, indicating a quick path to commercial operations.

Negative

• Acquisition closure is contingent on obtaining satisfactory financing, with no guarantee conditions will be met.

Facility Designed to Produce ~ 43,000,000 Gallons/yr. of Renewable Diesel

HOUSTON, TX, Dec. 01, 2021 (GLOBE NEWSWIRE) -- via NewMediaWire -- Viking Energy Group, Inc. (OTCQB: VKING) (“Viking” or the “Company”) is pleased to announce that on Nov. 18, 2021 it entered into a Membership Interest Purchase Agreement to acquire a 100% interest in a group of companies that arein the process of engineering, developing, constructing and bringing into commercial operations a processing plant located in Reno, Nevada, which is designed to produce renewable diesel (the “Plant”). The estimated production capacity of the Plant once operational is ⁓43,000,000 Gallons per year.  The main part of the Plant is ⁓95% complete and there is a pre-treatment unit under construction within the Plant that is ⁓30% complete.

Renewable diesel fuel, sometimes called green diesel, is a biofuel that is chemically the same as petroleum diesel fuel, and is produced through various thermochemical processes such as hydrotreating, gasification, and pyrolysis.  Renewable diesel is made from renewable feedstocks instead of crude oil. 

Viking’s obligation to close the transaction is conditional on a number of items set out in the Membership Interest Purchase Agreement, including, without limitation Viking having obtained financing, on terms and conditions satisfactory to Viking in its sole discretion. There is no guaranty the conditions will be satisfied.

Additional details regarding the proposed transaction were included in, and the description above is qualified in its entirety by reference to the Membership Interest Purchase Agreement attached as an exhibit to, Viking’s Current Report on Form 8-K filed with the Securities and Exchange Commission (“SEC”) on November 19, 2021, and is available under “investors” – “SEC filings” at www.vikingenergygroup.com.

About Viking:

Based in Houston, Texas, Viking Energy Group, Inc. is a growth-oriented diversified energy company. Through various majority-owned subsidiaries, Viking provides custom energy & power solutions to commercial and industrial clients in North America and owns interests in oil and natural gas assets in the United States.  The company also holds an exclusive license in Canada to a patented carbon-capture system. For more information, please visit the company's website at www.vikingenergygroup.com.

Forward-Looking Statements

This press release may contain forward-looking information within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended. Any statements that are not historical facts contained in this press release are "forward-looking statements", which statements may be identified by words such as "expects," "plans," "projects," "will," "may," "anticipates," "believes," "should," "intends," "estimates," and other words of similar meaning. Such forward-looking statements are based on current expectations, involve known and unknown risks, a reliance on third parties for information, transactions that may be cancelled, and other factors that may cause our actual results, performance or achievements, or developments in our industry, to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from anticipated results include risks and uncertainties related to the fluctuation of global economic conditions or economic conditions with respect to the oil and gas industry, the COVID-19 pandemic, the performance of management, actions of government regulators, vendors, and suppliers, our cash flows and ability to obtain financing, competition, general economic conditions and other factors that are detailed in  Viking’s filings with the Securities and Exchange Commission. We intend that all forward-looking statements be subject to the safe-harbor provisions.

Contact Information
Investors and Media:
Tel. 281.404.4387 (ext.3)

FAQ

What is the purpose of Viking Energy's recent acquisition?

The acquisition aims to enhance Viking's renewable diesel production capacity through a processing plant in Reno, Nevada.

When was the Membership Interest Purchase Agreement signed by Viking Energy?

The Membership Interest Purchase Agreement was signed on November 18, 2021.

What is the expected annual production capacity of the Reno plant?

The Reno plant is designed to produce approximately 43 million gallons of renewable diesel per year.

What are the current construction status and challenges of the Reno plant?

The plant is approximately 95% complete, and a pre-treatment unit is about 30% completed, but financing conditions remain a challenge.

How might Viking Energy's acquisition impact its stock performance?

If the acquisition closes successfully, it could enhance revenue potential and market positioning, but financing risks may negatively impact stock performance.